Best and Worst Tax States for Businesses

Where is the best place to call home? That all depends on the criteria you’re using to judge. So what if you’re looking to start a business or move your business and you want to find a tax-friendly location for your business? It turns out that where you locate your company can have significant implications.

According to the Tax Foundation, these are the 10 states with best tax climate when it comes to corporate or business taxes.

1. Wyoming

2. South Dakota

3. Alaska

4. Florida

5. Nevada

6. Montana

7. New Hampshire

8. Utah

9. Indiana

10. Oregon

So what makes these 10 states so tax-friendly? In most cases it’s the lack of a major tax. For example, all of these states forgo one or more of the following taxes: individual income tax, the corporate tax, or the sales tax.

On the other hand, these are the 10 worst states for the business tax climate.

41. Rhode Island

42. Louisiana

43. Maryland

44. Connecticut

45. Ohio

46. Minnesota

47. Vermont

48. California

49. New York

50. New Jersey

These states share several tax traits, including having non-neutral, complex taxes with high rates, including property taxes and high individual income taxes. The Tax Foundation also ranked New Jersey 36th in unemployment insurance tax, 42nd in corporate business taxes, 46th in sales taxes, 48th in individual income taxes and